Government approves 20 per cent SAIL stake sale
23 Apr 2010
The government has approved the sale of 20 per cent equity in Steel Authority of India Ltd (SAIL), comprising of a 10 per cent follow-on offer and 10 per cent government stake sale.
The cabinet committee on economic affairs (CCEA) has approved the proposal for raising additional equity by the Steel Authority of India Ltd (SAIL) to the extent of 10 per cent of the paid-up equity and disinvestment of 10 per cent of Government of India's holding in SAIL through offer for sale, to be carried out in two separate tranches, an official release said.
The 10 per cent follow-on public offer (FPO) of SAIL equity and the government offer to sell 10 per cent equity stake will be made in two discrete tranches, SAIL also said in a filing with the Bombay Stock Exchange (BSE).
Both tranches would comprise 5 per cent of fresh issue and 5 per cent pre-issue paid-up equity of SAIL out of government's shareholding, the release said.
The first tranche of the stake sale will be carried out in the domestic market as per SEBI regulations.
The second tranche of stake sale would be made at an appropriate time in accordance with SEBI guidelines and prevailing market conditions, it said.